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HUMAN RESOURCE DEVELOPMENT FUND (HRDF) What is HRDF HRDF as known as Human Resource Development Fund. The fund is designed to improve the quality of human capital and the quality of first-class employees, which can also be said to encourage employers to actively train their employees to improve their working ability and efficiency. Benefit of HRDF  The employers under the scheme are eligible for receiving a grant from the fund to spend on their employee training program. The grants offered by the HRDF are quite capable of handling a major portion of the expenses incurred in organizing such training. Consequences of failure in register HRDF Fine up to RM10,000 Imprisonment for a term not exceeding 1 year/ or Both   Calculations of HRDF HRD levy = HRD levy % x (Basic Salary + Fixed Allowances)

Hire Purchase Definition :  Hire purchase is a form of finance. Essentially you have bought the item and used a loan (from the finance company) to pay for it.   Accounting for Hire Purchase : For accounting point of view both hire purchase and  instalment payment system are same. Before accounting, we should know following things :- a) Cash price is that price which will be paid if any asset is purchased on cash without installment b) Hire price = Cash price + Interest for risk of giving asset on instalment c) Down payment = Payment at the beginning of deal of hire purchase   Benefits of Hire Purchase: Kind to your cash flow Access High – Spec Assets Lower Interest Than Other Funding Options It is possible to claim capital allowance against taxes

Capital Allowance What is Capital Allowance ? Capital allowance is an amount of money spent on business assets that can be subtracted from what a business owes in tax.   Why Claim Capital Allowance  ? You can retain more cash that can be reinvested to foster company growth.   Benefits of claiming ? Reduce or completely shelter a tax liability No restriction on high earners claiming wear and tear allowances and most industrial buildings allowances Improve cash flow and keep cash in your business! Possible cash refund / repayment of taxes